Scamford’s Brochures Painted A Rosy Picture, Reality Much Darker.

If you wanted to invest with Scamford, it appears he would send you a colorful brochure featuring private jets, huge skyscrapers, powerful boardrooms in Zurich.  And if you wanted to invest over $5M, he’d fly you into Antigua and wine and dine you until he got your money.

And then?

Then you see him being served with court papers today, three of his companies shut down, facing massive fraud charges.  Here’s what we’re learning about Scamford:

  • Scamford’s “team of 20 analysts” that oversaw the money?  Nope.  Apparently, didn’t exist. Just Scamford and longtime friends, James Davis.
  • Scamford’s certificate of deposits that were yielding close to 10% return when the industry average was barely 3?  Those weren’t registered by the SEC.
  • Near the end, clients were prohibited from withdrawing their money.  Maybe because there wasn’t any.

Basically Scamford, if what they are alleging is true, took about 50, 000 clients to the cleaners, promised them big returns and now it’s entirely possible that they’ll never get their money back.

Who invests $5 million dollars because of a colorful brochure anyway?

Nice seven million dollar dress shirt, buddy.  I’m wearing a shirt I bought from a gas station right now.

Sir_Allen_Stanford__506044a